Telstra sticks with AFL contract

Telstra Corporation chief executive David Thodey has welcomed the government's decision to review copyright laws in response to the Federal Court's ruling on rival Optus's TV Now service.

Prime Minister Julia Gillard on Wednesday said the government would urgently consider changes to the laws to protect Australia's sporting codes.

"It is important for the sporting right code, it is important for us," Mr Thodey told reporters during Telstra's half-year results presentation in Melbourne on Thursday.

"We've got to have clarity and it is not clear today."

The government said University of Technology Sydney's Dean of Law, Professor Jill McKeough, would head a review into copyright in the digital environment.

Mr Thodey said the telco was still considering its options after the Federal Court decision, which gave the green light for Optus's customers to record free-to-air programs on their mobile devices, and watch them on a slight delay.

The ruling from Justice Stephen Rares has, according to some media experts, put in doubt Telstra's $153 million, five-year deal for the online and mobile rights for Australian Football League (AFL) matches.

Asked if Telstra would walk away from the contract, signed last year, Mr Thodey said: "There is a lot of water still to go under the bridge".

"But the bottom line is that we have a long relationship with the AFL and I know that we will continue to drive value from that contract.

"We are pleased with the contract we have with the AFL."

Mr Thodey said the company was in close dialogue with the AFL and National Rugby League (NRL).

Delegates from the AFL, NRL, Cricket Australia, Tennis Australia and lobby group the Coalition of Major Professional and Participation Sports met with Ms Gillard and other key ministers earlier this week.